Daily Briefs

• The steady selloff in Swire Properties (1972 HK) could result in the stock being deleted from global passive portfolios in the next couple of months.
• Swire Properties (1972 HK) trades marginally cheaper than its similar sized peers on forward PE and price to book value.
• Swire Pacific (A) (19 HK) owns 82% of Swire Properties (1972 HK) and a big drop in the stock price could see them step in.

• The new pre-disclosure rule starting July 24th will reshape business practices. Local institutions are now preparing by launching dedicated block deal funds, targeting 40 to 80 deals annually.
• No rule bars short-sellers from block deals post-pre-disclosure. Local institutions are planning to exploit this, anticipating sellers favoring club deals under new July rules, potentially stabilizing prices for hedge strategies.
• Access to club deals will be crucial post-July in Korea’s block deal market. Effective short-selling instruments are also vital with the ban extended until March next year.

• Implied Volatilities (IVs) stabilized over the week after falling dramatically since the 04-June-2024 India General Election results.
• No tactical changes required while IVs are stable & “High & Down” Vol-state is maintained.
• Vol Curve continues to be in Contango. Lack of significant event risk should keep term structure locked in its current orientation. 

• Everest Group has sustainable and improving 15-20% ROEs
• Stock trades at a valuation of 1.2x book and 6x P/E
• Poised for future success with accelerating casualty pricing, stable property-cat rates, and potential for hitting 90 combined ratio target

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• During the period under consideration, i.e. April 3rd, 2024 to May 3rd, 2024, the EUR/USD pair posted both downward and upward swings.
• In the beginning, it faced a slight increase, while from April 9th until April 18th the pair faced a sharp decrease.
• After that, it fluctuated sideways and by the end of the period the pair traded at a higher level but still below the price level of the start of April. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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